CHARTER HALL GROUP — Interim / Quarterly Report 2008

Feb 25, 2008

APPENDIX 4D – HALF YEAR REPORT HALF-YEAR ENDED 31 DECEMBER 2007

Charter Hall Group (CHC) – comprising the stapling of ordinary shares in Charter Hall Limited (ACN 113 531 150) and units in Charter Hall Property Trust (ARSN 113 339 147)

1. Reporting period

Half-year report for the period ended 31 December 2007.

2. Results for announcement to the market

Revenue from ordinary activities Profit from ordinary activities after tax attributable to members Net profit for the period after tax attributable to members	Consolidated 2007 $000’s Consolidated 2006 $000’s % change
	42,687 27,335 + 56% 46,482 16,257 + 186% 46,482 16,257 +186%

Profit exceeds revenue due to gains on sale of investments of $7,387,372 and share of net profits of associates of $4,499,417 which are not treated as revenue.

	2007 (Cents)	2006	(Cents)	% change
Distribution / dividend
Interim distribution in respect of a CHPT unit	6.30		4.77	+ 32%
Interim dividend in respect of a CHL share	nil		nil	n/a
Record date for determining entitlements to distributions -	31 December	2007.
The interim distribution will be paid on 29 February 2008.
	2007 (Cents)	2006	(Cents)	% change
Earnings per security
Basic earnings per stapled security	11.09		4.69	+ 136%
Basic underlying* earnings per stapled security	6.32		4.67	+ 35%

• Underlying earnings excludes fair value adjustments, gains on sale of investments and non cash AIFRS charges such as share based payments expense and amortisation.

3. Net tangible assets per security

	31	December	2007	31	December 2006	% change
NTA per security			$1.18		$0.90	+ 31%

The number of securities on issue is 436.7m (2006: 376.3m). For the calculation of NTA the number of securities is reduced to 419.8m (2006: 364.7m). The difference represents non-vested securities issued under the employee share scheme which are unable to be recognised for accounting purposes under AASB 2 Share Based Payments . The corresponding loan receivable is also unable to be recognised.

4. Entities over which control has been gained or lost during the period

3 trusts which are 100% owned by the Charter Hall Core Plus Retail Fund have been established during the period. They are Ipswich Retail Property Trust, Rothwell Retail Property Trust and CPRF Gepps X Trust.

5. Distribution Reinvestment Plan (“DRP”)

The DRP is currently de-activated.

6. Associates & Joint venture entities

The Group did not have any holdings in joint venture entities as at 31 December 2007.

During the period the Group completed the acquisition of a 50% interest in Commercial & Industrial Property Pty Ltd.

The Group holds a 3% interest in Charter Hall Opportunity Fund 4 and a 15% interest in Charter Hall Opportunity Fund 5 which are both unlisted opportunity funds managed by Charter Hall Limited.

The Group holds a 14% interest in Charter Hall Diversified Property Fund, a 20% interest in Charter Hall Core Plus Office Fund and a 25% interest in Charter Hall Core Plus Industrial Fund.

7. Accounting standards applied to foreign entities

Not applicable.

8. Audit dispute or qualification

None.

CHARTER HALL GROUP

FINANCIAL REPORT

COMPRISING CHARTER HALL LIMITED AND ITS CONTROLLED ENTITIES

FOR THE HALF-YEAR ENDED 31 DECEMBER 2007

Contents

DIRECTORS’ REPORT.................................................................................................................1 CONSOLIDATED INCOME STATEMENT ....................................................................................6 CONSOLIDATED BALANCE SHEET...........................................................................................7 CONSOLIDATED CASH FLOW STATEMENT.............................................................................8 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY........................................................9 NOTES TO THE FINANCIAL STATEMENTS .............................................................................10 DIRECTORS’ DECLARATION....................................................................................................13 INDEPENDENT AUDITOR’S REVIEW REPORT .......................................................................14

Charter Hall Group

Directors’ Report

Charter Hall Group (the Group or CHG) comprises Charter Hall Limited (the Company or CHL) and its controlled entities, which include Charter Hall Funds Management Limited as the Responsible Entity of Charter Hall Property Trust (the Trust or CHPT). Charter Hall Limited and Charter Hall Funds Management Limited have identical Boards of Directors. The term Board hereafter should be read as references to both these Boards.

The Directors of the Board present their Report, together with the consolidated Financial Report of the Group for the half-year ended 31 December 2007, and the Independent Auditor’s Review Report thereon.

The units in the Trust are ‘stapled’ to the shares in the Company. A stapled security comprises one Company share and one Trust unit. The stapled securities cannot be traded or dealt with separately.

Directors

The Directors of the Board in office at any time during the whole of the half-year and up to the date of this report are as follows:

K Roxburgh (Chairman) R Woodhouse (Deputy Chairman) A Biet (resigned 24/10/07) P Derrington G Fraser C Fuchs D Harrison C McGowan D Southon

Distributions

Dividends paid or declared by Charter Hall Limited and distributions paid or declared by Charter Hall Property Trust to security holders since the end of the previous financial year were:

				2007	2006
				$’000	$’000
Interim distribution of	6.30	(2006:	4.77) cents per security declared.	26,448	17,440

Distribution Re-investment Plan

The DRP is currently deactivated.

1

Charter Hall Group Directors’ Report (continued)

Results

The 31 December 2007 half-year financial results can be summarised as follows:

		Dec 2007		Dec 2006
Revenue ($m)	1	42.7		27.3
Net profit after tax ($m)		46.5		16.3
Underlying net profit after tax ($m)	2	26.5		16.2
Distribution ($m)		26.5		17.4
Earnings per Stapled Security (cents)		11.09		4.54
Underlying earnings per stapled security (cents)	2	6.32		4.67
Distribution per stapled security (cents)		6.30		4.77
Interest Cover (before gains on sale of investments and fair value gains)		3.80 times		8.30 times
		Dec 2007		June 2007
Total Assets ($m)		803.8		650.4
Total Liabilities ($m)		301.0		189.4
Net Assets ($m)		502.8		461.0
NTA per security ($)	3	1.18		1.12
Gearing – borrowings to total assets	4	29%		21%
Assets under Management ($bn)		3.7		2.8

1 – Gross revenue does not include gains on sale of investments of $7.4m or share of net profits of associates of $4.5m.

• 2 – Excludes AASB140 fair value adjustments on investment property and financial assets, gains on sale of investments and non-cash AIFRS charges such as share based payments expense and amortisation.

• 3 – Excludes non-vested stapled securities issued under LTI Plan in accordance with AASB2 Share Based Payment .

• 4 – Gearing is calculated by using debt and total assets net of cash

The reported Group result is a profit after tax for the half-year of $46.5m (2006 profit of $16.3m). Profit after tax includes gains on sale of investments of $7.4m and net fair value gains of $14.4m (2006 gain $0.5m). These gains are mainly a result of the sale of CHPT’s 50% interest in the property at 400 Kent Street, Sydney which contributed $5.2m to the total gain.

The increase in net profit compared to the previous corresponding period is due mainly to the following:

• Increased CHPT distribution income as a result of additional co-investments by CHPT in Charter Hall Core Plus Office Fund (CPOF), Charter Hall Core Plus Industrial Fund (CPIF) and Charter Hall Diversified Property Fund (DPF).

2

Charter Hall Group Directors’ Report (continued)

• Increased net rental income from CHPT due to the income from Charter Hall Core Plus Retail Fund (CPRF), 25 Nepean Highway, Mentone, Victoria and a full 6 months of rental income being received for 372 Whitehorse Rd, Nunawading, Victoria.

• Increased fund management income mainly as a result of growth in assets under management from $2.1b at 31 December 2006 to $3.7b at 31 December 2007.

• Increased development management income due to increased projects under management.

• 50% of Commercial Industrial Property Pty Ltd (CIP) was acquired during the current period with the share of equity accounted profit contributing to increased income.

• Fair value gains were higher due to uplifts in the values of the CPOF and CPIF investments and upward revaluations of directly owned properties including 25 Nepean Highway, Mentone, Victoria and 61 Nepean Highway, Mentone, Victoria.

Review of operations

The Group closed the initial equity raising for the Charter Hall Umbrella Fund (CHUF) with $187m of retail equity raised. CHPT sold a 3% interest in CPOF and a 7% interest in CPIF to CHUF.

The Group raised external equity commitments of $375m for CPOF to enable additional investments.

CPRF is currently 100% owned by CHPT with assets of $254m which including CHPT directly owned retail assets comprise a $400m seed portfolio of CPRF assets, which are intended to move off the CHPT balance sheet during FY08 following an external wholesale equity raising.

CPOF, in which CHPT holds a 20% interest, recently acquired its 15th asset bringing the total asset value to nearly $1.4bn (on a fully developed basis) having increased from $1bn at 1 July 2007.

CPIF, in which CHPT holds a 25% interest, recently acquired its 11[th] asset bringing the total fund size to $325m (on a fully developed basis) having increased from $270m at 1 July 2007.

DPF, in which CHPT holds a 14% interest, recently acquired its 14th property which are in total valued at approximately $246m up from $123m from 1 July 2007.

During the period CPOF has purchased 4 investment properties for $354m and CPIF 3 assets for $55m. DPF purchased 4 investment properties for $100m. The Group has also purchased an additional 4 investment properties as seed assets for CPRF.

Charter Hall Opportunity Fund 4, in which CHL holds a 3% interest entered into an agreement with Axiom Properties Limited to develop a site at Gepps Cross, Adelaide. Charter Hall Opportunity Fund 5, in which CHL holds a 15% interest, purchased sites at Perth, WA, Little Bay, NSW and Hastings, New Zealand with $102m of the funds $300m equity now committed to projects.

The Group has completed the acquisition of a 50% share in Commercial & Industrial Property Pty Ltd.

3

Charter Hall Group

Directors’ Report

(continued)

Total funds under management as at 31 December 2007 have grown to $3.7b (2006: $2.1b). Through the previously mentioned wholesale and retail equity raisings, the CHOF5 wholesale equity raising and equity calls by CPOF and CPIF there has been an acceleration of the growth in the Group’s funds under management.

Auditor’s independence declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

Rounding off of amounts

The Group is of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial report. Amounts in the directors’ report and financial report have been rounded to the nearest thousand dollars, in accordance with that class order, unless otherwise indicated.

This report is made in accordance with a resolution of the directors.

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Kerry Roxburgh Chairman Sydney 25 February 2008

4

Charter Hall Group

Consolidated Income Statement For the half-year ended 31 December 2007

Notes	31 December 2007 $’000 42,687 7,387 (4,267) (7,029) (86) (8,842) 4,499 (2,585) 31,764 14,378 46,142 340 46,482 - 46,482 579 45,903 46,482 Cents per stapled security 6.30 11.09 10.90	31 December 2006 $’000
Revenue from continuing operations Gains on sale of investments Investment property expenses Employee benefits expenses Depreciation Finance costs Share of net profits of associates accounted for using the equity method Other expenses Net gains from fair value adjustments Profit before income tax Income tax benefit / (expense) Profit for the period Profit attributable to minority interests Net profit after income tax attributable to stapled security holders of Charter Hall Group Attributable to: Equity holders of Charter Hall Limited Equity holders of Charter Hall Property Trust Profit attributable to stapled security holders of Charter Hall Group Distributions and dividends paid and payable Basic earnings per stapled security 2 Diluted earnings per stapled security 2		27,335 - (3,130) (2,978) (47) (2,157) 64 (2,350)
		16,737 511
		17,248 (930)
		16,318 (61)
		16,257
		1,042 15,215
		16,257
		Cents per stapled security 4.77 4.69 4.66

The above consolidated income statement should be read in conjunction with the accompanying notes.

6

Charter Hall Group

Consolidated Balance Sheet As at 31 December 2007

	31 December 2007 $’000 37,278 17,781 - - 2,818 57,877 13,491 47,116 189,170 485,682 1,385 3,156 5,621 295 745,916 803,793 33,650 43 33,693 263,085 4,089 156 267,330 301,023 502,770 5,349 (49,856) 786 (43,721) 546,491 502,770	30 June 2007 $’000
ASSETS Current assets Cash and cash equivalents Receivables Financial assets available for sale Deferred tax assets Other assets Total current assets Non-current assets Receivables Investments accounted for using the equity method Financial assets at fair value through profit and loss Investment properties Property, plant and equipment Deferred tax assets Derivative financial instruments Other assets Total non-current assets Total assets LIABILITIES Current liabilities Payables Provisions Total current liabilities Non-current liabilities Interest bearing liabilities Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Equity holders of Charter Hall Limited Contributed equity Reserves Retained profits Equity holders of Charter Hall Property Trust and other minority interests Total equity		26,507 26,564 218 641 -
		53,930
		7,405 760 149,945 430,701 1,355 642 5,345 295
		596,448
		650,378
		28,043 149
		28,192
		158,572 2,562 41
		161,175
		189,367
		461,011
		5,131 (50,952) 207
		(45,614) 506,625
		461,011

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

7

Charter Hall Group

Consolidated Cash Flow Statement For the half-year ended 31 December 2007

Notes	Consolidated 1 July 2007 to 31 December 2007 $’000 39,285 (17,461) 1,410 (6,573) 4,420 - 21,081 - (80,141) (104,109) (32) - (4,178) 30,500 42,763 205 - (114,992) 20,917 104,488 - - (20,723) 104,682 10,771 26,507 37,278	Consolidated 1 July 2006 to 31 December 2006 $’000
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest paid Distributions from investments Income tax paid Net cash inflow from operating activities Cash flows from investing activities Payments for acquisition of controlled entities Payments for acquisition of investment properties Payments for investments Payment for plant and equipment Equity raising costs for CHOF4 Loans to employees and directors (Employee Share Plan) Proceeds from sale of investment property Proceeds from sale of financial assets Loans to related parties Loans repaid by third parties Net cash outflow from investing activities Cash flows from financing activities Net proceeds from issue of shares and other equity securities Proceeds from borrowings Funds received from minorities Cash transferred on raising of external equity for CPOF Distribution paid to security holders Net cash inflow from financing activities Net increase in cash and cash equivalents held Cash at the beginning of the half-year Cash and cash equivalents at the end of the half-year		17,437 (12,276) 6,332 (1,845) 768 (3)
		10,413
		(9,691) (144,846) (64,632) (464) (226) (3,033) - - - 517
		(222,375)
		75,670 35,176 3,841 (58,318) (10,402)
		45,967
		(165,995) 168,370
		2,375

The above consolidated cash flow statement should be read in conjunction with the accompanying notes .

8

Charter Hall Group

Consolidated Statement of Changes in Equity For the half-year ended 31 December 2007

	Consolidated 1 July 2007 to 31 December 2007 $’000	Consolidated 1 July 2006 to 31 December 2006 $’000
Total equity at the beginning of the half-year Cash flow hedges Foreign currency reserve Other Net loss recognised directly in equity Profit for the half-year Total recognised profit for the half-year Transactions with security holders in their capacity as security holders: Contributions of equity, net of transaction costs Distribution provided for or paid Other Share option reserve Minority interest in subsidiary Total equity at the end of the half-year Total profit for the half-year and net profit recognised directly in equity attributable to: Equity holders of Charter Hall Limited Equity holders of Charter Hall Property Trust	461,011 (189) (73) - (262) 46,482 46,220 20,923 (26,448) (45) 1,109 - (4,461) 502,770 566 45,654 46,220	279,470
		(1,151) - (7)
		(1,158) 16,257
		15,099
		45,839 (17,440) (213) 189 3,841
		32,216
		326,785
		1,042 14,057
		15,099

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes .

9

Charter Hall Group

NOTES TO THE FINANCIAL STATEMENTS HALF-YEAR ENDED 31 DECEMBER 2007

1. BASIS OF PREPARATION OF HALF-YEAR REPORT

This general purpose financial report for the interim half-year reporting period ended 31 December 2007 has been prepared in accordance with Accounting Standard AASB 134, Interim Financial Reporting and the Corporations Act 2001 .The Charter Hall Group financial report represents the consolidated financial report of Charter Hall Limited and its controlled entities including Charter Hall Property Trust. For the purposes of AASB Interpretation 1002 Post Date of Transition Stapling Arrangements , Charter Hall Limited has been identified as the Parent Entity in relation to the stapling. In accordance with AASB Interpretation 1002 the results and equity, not directly owned by CHL, of CHPT have been treated and disclosed as a minority interest. Whilst the results and equity of CHPT are disclosed as a minority interest, the stapled security holders of CHL are the same as the stapled security holders of CHPT.

The interim financial report does not include all notes normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2007 and any public announcements made by Charter Hall Group during the half-year to 31 December 2007 in accordance with continuous disclosure requirements of the Corporations Act 2001 .

(a) BASIS OF PREPARATION OF INTERIM FINANCIAL REPORT

The accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year and corresponding interim reporting period.

2. EARNINGS PER STAPLED SECURITY

Basic – earnings per stapled security Diluted – earnings per stapled security Basic – underlying earnings per stapled security Diluted – underlying earnings per stapled security Earnings reconciliation Basic earnings per stapled security: Net profit after tax Diluted earnings per stapled security: Net profit after tax Basic underlying earnings per stapled security : Net profit after tax Gains on sale of investments Fair value adjustment on investments Amortisation of lease incentives given to tenants Straight lining of lease incentives received Non-cash share based payments expense Other Basic underlying earnings Diluted underlying earnings**	Consolidated 31 December 2007 Consolidated 31 December 2006
	11.09 cents 4.69 cents 10.90 cents 4.66 cents 6.32 cents 4.67 cents 6.32 cents 4.64 cents 2007 $'000 2006 $'000
	46,482 16,257 47,521 16,767 46,482 16,257 (7,387) - (14,378) (511) 213 - 216 - 1,109 195 243 240
	26,498 16,181
	27,537 16,691

• Diluted earnings calculation includes non-vested securities issued under the employee share plan which are derecognised for accounting under AASB 2 Share Based Payments. Diluted earnings are higher than basic earnings as interest income on loans to employees for securities under the share plan would be recognised.

The weighted average number of stapled securities on issue used in the calculation of basic ordinary earnings per stapled security was 419,184,910 stapled securities (2006: 346,496,211).

The weighted average number of stapled securities on issue used in the calculation of diluted ordinary earnings per stapled security was 435,967,244 stapled securities (2006: 359,438,094).

10

NOTES TO THE FINANCIAL STATEMENTS HALF-YEAR ENDED 31 DECEMBER 2007

3. DISTRIBUTIONS

Distributions recognised in the current period are:

December 2007 Payment Total Amount Date of per Unit $’000 Payment Units Interim 6.30 cents 26,448 29.2.08 distribution Total distribution 6.30 cents 26,448 December 2006 Payment Total Amount Date of per Unit $’000 Payment Units Interim distribution 4.77 cents 17,440 28.2.07 Total distribution 4.77 cents 17,440

4. EQUITY SECURITIES ISSUED

4. EQUITY SECURITIES ISSUED
	1 July	to	1 July to	1 July to		1 July to
	31 December		31 December	31 December	2006	31 December
	2007 Stapled		2007	Stapled Securities		2006
	Securities		$’000	’000		$’000
	’000
Issues of stapled securities
during the period
Opening balance	409,121		513,597	329,186		336,459
Add back LTI’s reversed June 2007		11,845	14,598		-	-
CIP purchase		5,599	15,000		-	-
Gift to employees		23	66		-	-
Security purchase plan		69	207		-	-
Retail offer		-	-	15,424		19,591
Securities issued to Wyllie Group		-	-	18,000		26,764
Employee share scheme issue
from last year that have vested		-	-		2,066	2,074
Employee share scheme issue		10,041	27,713		7,509	9,950
	436,698		571,181	372,185		394,838
Less: transaction costs			(239)			(2,590)
Less: reversal of non-vested LTI
securities	(16,891)		(36,421)	(7,509 )		(9,950 )
	419,807		534,521	364,676		382,298

The total number of securities issued at 31 December 2007 including employee share plan securities is 436,698,020.

5. CONTINGENT LIABILITIES

Details and estimated maximum amounts of contingent liabilities (for which no amounts are recognised in the financial statements) are as follows:

The consolidated entity has obtained a bank guarantee of $1.5 million on behalf of Charter Hall Funds Management Limited to satisfy the net tangible asset requirements of its Australian Financial Services licence. No liability is expected to arise.

11

NOTES TO THE FINANCIAL STATEMENTS HALF-YEAR ENDED 31 DECEMBER 2007

6. SEGMENT REPORTING

The consolidated entity is organised into the following divisions:

• Property investment – has interests in investment properties and unlisted trusts

• Funds management and corporate – responsible for funds management, development management and property management

DECEMBER 2007

Business Segment Summary Revenue Net segment result after interest expense and before fair value adjustments Share of net profits of associates accounted for using the equity method Profit before income tax expense and fair value adjustments Fair value adjustments Profit before income tax Income tax benefit Profit for the period DECEMBER 2006 Business Segment Summary Revenue Net segment result after interest expense and before fair value adjustments Share of net profits of associates accounted for using the equity method Profit before income tax expense and fair value adjustments Fair value adjustments Profit before income tax Income tax expense Profit for the period	Property investment Funds management and corporate Inter segment Eliminations Consolidated $’000 $’000 $’000 $’000
	37,387 18,743 (13,443) 42,687
	31,024 (3,759) - 27,265 - 4,499 - 4,499
	31,024 740 - 31,764 14,879 (501) - 14,378
	45,903 239 - 46,142 - 340 - 340
	45,903 579 - 46,482
	Property investment Funds management and corporate Inter segment Eliminations Consolidated $’000 $’000 $’000 $’000
	21,125 12,426 (6,216) 27,335
	15,411 1,908 (646) 16,673 - 64 - 64
	15,411 1,972 (646) 16,737 (135) - 646 511
	15,276 1,972 - 17,248 - (930) - (930)
	15,276 1,042 - 16,318

DECEMBER 2006

7. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

There have been no significant events or transactions that have arisen since the end of the financial period which, in the opinion of the Directors, would significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity.

12

Charter Hall Group Directors’ Declaration

For the half-year ended 31 December 2007

In the directors’ opinion:

• (a) the financial statements and notes set out on pages 6 to 12 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that the Charter Hall Group will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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Kerry Roxburgh Chairman Sydney 25 February 2008

13

CHARTER HALL PROPERTY TRUST ARSN 113 339 147 AND ITS CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2007

Contents

DIRECTORS’ REPORT.................................................................................................................2 CONSOLIDATED INCOME STATEMENT ....................................................................................4 CONSOLIDATED BALANCE SHEET...........................................................................................5 CONSOLIDATED CASH FLOW STATEMENT.............................................................................6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY........................................................7 NOTES TO THE FINANCIAL STATEMENTS ...............................................................................8 DIRECTORS’ DECLARATION....................................................................................................10 INDEPENDENT AUDITOR’S REVIEW REPORT .......................................................................11

Charter Hall Property Trust

Directors’ Report

The Directors of Charter Hall Funds Management Limited (the Responsible Entity), the responsible entity of Charter Hall Property Trust (the Trust or CHPT) present their Report, together with the interim Financial Report of the Trust for the half-year ended 31 December 2007, and the Independent Review Report thereon.

DIRECTORS

The Directors of the Responsible Entity in office at any time during the whole of the half-year and up to the date of this report are as follows:

K Roxburgh (Chairman) R Woodhouse (Deputy Chairman) A Biet (resigned 24/10/07)

P Derrington G Fraser C Fuchs D Harrison C McGowan D Southon

Distributions

Distributions paid or declared by the Trust to unit holders were:

				2007	2006
				$’000	$’000
Interim distribution of	6.30	(2006:	4.77) cents per unit	26,448	17,440

Review of operations

The consolidated net profit before fair value adjustments was $31,024,000 (2006: $15,411,000). After adjusting for net fair value gains of $14,879,000 (2006: losses of $135,000) and minority interests of $0 (2006: $61,000) the reported profit attributable to unitholders for the half-year was $45,903,000 (2006: $15,215,000).

Auditor’s independence declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3.

Rounding off of amounts

The Trust is of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial report. Amounts in the directors’ report and financial report have been rounded to the nearest thousand dollars, in accordance with that class order, unless otherwise indicated.

Auditor

PricewaterhouseCoopers continues in office in accordance with section 327 of the Corporations Act 2001 .

This report is made in accordance with a resolution of directors.

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Kerry Roxburgh Chairman Sydney 25 February 2008

2

Charter Hall Property Trust

Consolidated Income Statement

For the half-year 1 July 2007 to 31 December 2007

Notes	Consolidated 1 July 2007 to 31 December 2007 $’000	Consolidated 1 July 2006 to 31 December 2006 $’000
Revenue Gains on sale of investments Investment property expenses Finance costs Other expenses Net gains/(losses) from fair value adjustments Profit for the period Profit attributable to minority interests Net profit attributable to unit holders of Charter Hall Property Trust Distributions and dividends paid and payable Basic earnings per unit 2 Diluted earnings per unit 2	37,388 7,387 (4,267) (8,842) (642) 31,024 14,879 45,903 - 45,903 Cents per unit 6.30 10.95 10.53	21,125 - (3,130) (2,157) (427)
		15,411 (135)
		15,276 (61)
		15,215
		Cents per unit 4.77 4.39 4.23

The above consolidated income statement should be read in conjunction with the accompanying notes.

4

Charter Hall Property Trust

Consolidated Balance Sheet As at 31 December 2007

	Consolidated 31 December 2007 $’000 31,432 7,557 5 38,994 129,804 181,822 485,682 57 5,621 802,986 841,980 32,404 32,404 263,085 263,085 295,489 546,491 529,172 915 16,404 546,491	Consolidated 30 June 2007 $’000
ASSETS Current assets Cash and cash equivalents Receivables Other assets Total current assets Non-current assets Receivables Financial assets at fair value through profit and loss Investment properties Deferred tax assets Derivative financial instruments Total non-current assets Total assets LIABILITIES Current liabilities Payables Total current liabilities Non-current liabilities Interest bearing liabilities Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits / (losses) Total equity		23,402 13,731 10
		37,143
		75,351 142,096 430,701 59 5,346
		653,553
		690,696
		25,499
		25,499
		158,572
		158,572
		184,071
		506,625
		508,466 1,164 (3,005)
		506,625

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

5

Charter Hall Property Trust

Consolidated Cash Flow Statement For the half-year 1 July 2007 to 31 December 2007

	Consolidated 1 July 2007 to 31 December 2007 $’000 21,424 (6,048) 13,651 (6,573) 4,061 26,515 (80,127) (70,923) (45,169) 30,499 42,764 (122,956) 20,706 104,488 - - (20,723) 104,471 8,030 23,402 31,432	Consolidated 1 July 2006 to 31 December 2006 $’000
Cash flows from operating activities Receipts from customers Payments to suppliers Interest received Interest paid Distributions from investments Net cash inflow from operating activities Cash flows from investing activities Payments for acquisition of investment properties Payments for investments Net loans to/from related parties Proceeds from sale of investment properties Proceeds from sale of financial assets Net cash outflow from investing activities Cash flows from financing activities Net proceeds from issue of units Proceeds from borrowings Funds received from minorities Cash transferred on raising of external equity for CPOF Distributions paid Net cash inflow from financing activities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the half-year Cash and cash equivalents at the end of the half-year		12,168 (9,070) 11,378 (2,167) 1,377
		13,686
		(145,358) (59,105) (21,349) - -
		(225,812)
		75,205 35,232 3,841 (58,318) (10,395)
		45,565
		(166,561) 167,113
		552

The above consolidated cash flow statement should be read in conjunction with the accompanying notes .

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Charter Hall Property Trust

Consolidated Statement of Changes in Equity For the half-year 1 July 2007 to 31 December 2007

Total equity at the beginning of the half-year Cash flow hedges Foreign currency reserve Other Net loss recognised directly in equity Profit for the half-year Total recognised income and expenses for the half-year Transactions with security holders in their capacity as security holders: Contributions of equity, net of transaction costs Distribution provided for or paid Other Minority interest in subsidiary Total equity at the end of the half-year	Consolidated 1 July 2007 to 31 December 2007 $’000 506,625 (189) (60) - (249) 45,903 45,654 20,706 (26,448) (46) - (5,788) 546,491	Consolidated 1 July 2006 to 31 December 2006 $’000 328,966
		(1,151) - (7)
		(1,158) 15,215
		14,057
		45,373 (17,440) (213) 3,841
		31,561
		374,584

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes .

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NOTES TO THE FINANCIAL STATEMENTS HALF-YEAR ENDED 31 DECEMBER 2007

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This general purpose financial report for the interim half-year reporting period ended 31 December 2007 has been prepared in accordance with Accounting Standard AASB 134, Interim Financial Reporting and the Corporations Act 2001 . The Charter Hall Property Trust financial report represents the consolidated financial report of Charter Hall Property Trust and its controlled entities.

The interim financial report does not include all notes normally included in an annual financial report. Accordingly, this report should be read in conjunction with any public announcements made by Charter Hall Property Trust during the half-year 1 July 2007 to 31 December 2007 in accordance with the continuous disclosure requirements of the Listing Rules of the Australian Stock Exchange.

(a) BASIS OF PREPARATION OF INTERIM FINANCIAL REPORT

The principal accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year and corresponding interim reporting period.

2. EARNINGS PER UNIT

	Consolidated	Consolidated
	31 December	31 December
	2007	2006
Basic - earnings per unit	10.95	4.39 cents
Diluted - earnings per unit	10.53	4.23 cents

Earnings reconciliation

	2007	2006
	$'000	$'000
Basic earnings per unit:
Net profit after tax	45,903	15,215
Diluted earnings per unit*:
Net profit after tax	45,903	15,215

• Diluted earnings calculation includes units issued under the employee share plan which are derecognized for accounting under AASB 2 Share Based Payment .

The weighted average number of units on issue used in the calculation of basic ordinary earnings per unit was 419,184,910 units (2006: 346,496,211).

The weighted average number of units on issue used in the calculation of diluted ordinary earnings per unit was 435,967,244 units (2006: 359,438,094).

3. DISTRIBUTIONS

Distributions recognised in the current period are:

December 2007 Interim distribution December 2006 Interim distribution	Payment per Unit Total Amount $’000 Date of Payment 6.30 cents 26,448 29.2.08 4.77cents 17,440 28.2.07

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NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 31 DECEMBER 2007

4. EQUITY UNITS ISSUED

Issues of Units during the period Opening balance Add back LTI’s reversed June 07 CIP purchase Gift to employees Security purchase plan Retail offer Securities issued to Wyllie Group Employee share scheme issued last year that have vested Employee share scheme issue Less: transaction costs Less: reversal of LTI securities	1 July 2007 to 31 December 2007 Units ’000 1 July 2007 to 31 December 2007 $’000 1 July 2006 to 31 December 2006 Units ’000 1 July 2006 to 31 December 2006 $’000 409,121 508,466 329,186 333,088 11,845 14,451 - - 5,599 14,849 - - 23 64 - - 69 204 - - - - 15,424 19,395 - - 18,000 26,496 - - 2,066 2,053 10,041 27,434 7,509 9,851
	436,698 565,468 372,185 390,883 - (239) - (2,570) (16,891) (36,057) (7,509) (9,851)
	419,807 529,172 364,676 378,462

5. CONTINGENT LIABILITIES

Details and estimated maximum amounts of contingent liabilities (for which no amounts are recognised in the financial statements) are as follows:

The consolidated entity has given a bank guarantee of $1.5 million on behalf of Charter Hall Funds Management Limited to satisfy the net tangible asset requirements of its Australian Financial Services Licence. No liability is expected to arise.

6. SEGMENT REPORTING

The consolidated entity’s only business is investing in property assets in Australia and New Zealand. Consequently there are no separately reportable segments.

7. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

There have been no significant events or transactions that have arisen since the end of the financial period which, in the opinion of the Directors, would significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity.

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Directors’ Declaration

For the period ended 31 December 2007

In the directors’ opinion:

• (a) the financial statements and notes set out on pages 4 to 9 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2007 and of its performance for the half year ended on that date; and

• (b) there are reasonable grounds to believe that the consolidated entity will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

==> picture [134 x 40] intentionally omitted <==

Kerry Roxburgh Chairman Sydney 25 February 2008

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